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    The impact of strategic alignment and responsiveness to market on manufacturing firm's performance

    240438_240438.pdf (208.4Kb)
    Access Status
    Open access
    Authors
    Sardana, D.
    Terziovski, Mile
    Gupta, N.
    Date
    2016
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Sardana, D. and Terziovski, M. and Gupta, N. 2016. The impact of strategic alignment and responsiveness to market on manufacturing firm's performance. International Journal of Production Economics. 177: pp. 131-138.
    Source Title
    International Journal of Production Economics
    DOI
    10.1016/j.ijpe.2016.04.018
    ISSN
    0925-5273
    School
    Curtin Graduate School of Business
    URI
    http://hdl.handle.net/20.500.11937/33953
    Collection
    • Curtin Research Publications
    Abstract

    Drawing on dynamic capabilities theory and a sample based on the Indian manufacturing industry, we examine the influence of manufacturing operations' functioning, strategic alignment and responsiveness to market need for customization and firm performance. A multi-variate regression method is applied on the factors identified using confirmatory factor analysis. Our findings indicate that operations' strategic alignment to the firm's objectives is the single most key contributor to firm performance. The operations' capability to respond to market need for customization also significantly contributes to firm performance. Plant technology capability is also essential to respond effectively to market need for customization, and is positively and significantly related to firm performance. On the other hand, while delivery capability and cost control of the manufacturing operation are positively related to firm performance, they are not significant. Operations and marketing managers and firms' policy makers should emphasize operations' strategic alignment to firms' performance objectives, and build dynamic operational capability to be responsive to changing market needs.

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